Purchasing Function

Question 1

What are the responsibilities of the purchasing function

Answer 1

• to purchase everything a business needs to carry out its activities
• finding the best suppliers
• manage the stock to ensure sufficient levels of stock to carry out business operations

Question 2

What is the requisition procedures

Answer 2

• the purchasing function should determine the needs of each department
• done by issuing each department with requisition form

Question 3

What is the enquire procedures

Answer 3

• The function is now familiar with the purchasing needs of each department
• should enquire about prices and supplier
• quotations must be obtained from suppliers
• tenders are often by the supplier to deliver a specified number of products at certain prices
• aee often advertised in a newspaper

Question 4

How to select a supplier

Answer 4

• quality of products of each product
• prices of the products on offer
• availability of after sales services
• delivery costs
• delivery time

Question 5

What is the order procedures

Answer 5

• Should take place in writing

- file a copy of the order as proof in case of a problem arise regarding quantities price or quality

Question 6

How to accept a delivery

Answer 6

• inspect the delivered goods for damage
• ensure that the delivered goods are the same goods that were ordered
• complete the delivery note from the supplier for the suppliers goods
• keep a copy of the delivery note as proof that you received you goods

Question 7

What is the store new stock procedures

Answer 7

-once the new stock is received, it is stored in the storeroom
-conditions in the storeroom should be inspected regularly to prevent damage resulting from,
for eg burst pipes or power failures

Question 8

What is distribute

Answer 8

• the new products can be distributed to the different department
• records should be kept of all products taken from the storeroom to remain aware of the stock levels